Conneqt Business Solutions Executive Accountant Interview Questions and Answers

Yes, golden rules are basic principles of accounting that guide the preparation of financial statements.

• Golden rules are the fundamental principles of accounting that help in recording financial transactions accurately.

• There are three golden rules: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• For example, when cash is received, it is debited because it is an asset account and assets increas...read more

Double entry is a fundamental accounting concept where every transaction has equal and opposite effects on at least two accounts.

• Every transaction involves at least two accounts - one account is debited and the other is credited.

• Debits must equal credits in every transaction to maintain the accounting equation (Assets = Liabilities + Equity).

• Double entry ensures accuracy and helps in detecting errors in financial records.

• Example: When a company purchases inventory for cash, t...read more

The 3 golden rules of accounting are principles that guide the preparation of financial statements.

• 1. The revenue recognition principle - recognize revenue when it is earned, not when cash is received.

• 2. The matching principle - expenses should be matched with revenues in the period they are incurred.

• 3. The consistency principle - use the same accounting methods and procedures from period to period.

Accounts receivable is the money owed to a company by its customers for goods or services provided on credit.

• Accounts receivable represents the amount of money owed to a company by its customers for goods or services provided on credit.

• It is considered an asset on the company's balance sheet.

• Accounts receivable is typically collected within a certain period of time, often 30, 60, or 90 days.

• Examples include invoices sent to customers for products sold or services rendered.

• Mon...read more

Accounts payable is the amount of money a company owes to its suppliers or vendors for goods or services purchased on credit.

• Accounts payable represents a company's short-term debt obligations to its suppliers.

• It is listed as a liability on the company's balance sheet.

• Accounts payable is typically paid within a certain period, often 30, 60, or 90 days.

• Examples of accounts payable include invoices from suppliers for inventory purchases, utility bills, and rent payments.

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• It is used to spread the cost of an asset over its useful life for accounting and tax purposes.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Examples of depreciable assets include buildings, machinery, vehicles, and equipment.